BALLARD, FORD, DAIMLER-BENZ TO JOIN FORCES TO DEVELOP FUEL CELL TECHNOLOGY FOR FUTURE VEHICLES IN OVER C$600 MILLION TRANSACTION
JOINT NEWS RELEASE
STUTTGART, Germany, Dec. 15 /CNW/ - A significant global Alliance to
develop fuel cell technology was announced today among three leaders in the
field - Ballard Power Systems Inc., Daimler-Benz AG and Ford Motor Company.
The three companies signed a detailed memorandum of understanding today
in Stuttgart, with the expectation that final agreement will be reached within
a few months. The transaction is subject to applicable regulatory and stock
exchange approvals.
The agreement would ally two of the world's foremost companies in
automotive technology with the fuel cell industry's leading developer and
manufacturer, in order to accelerate the development of fuel-cell power
components for cars and trucks.
''Ford sees this partnership as a natural complement of the talent,
skills and technology among the three companies,'' said Ford Chairman Alex
Trotman. ''We have been working on the technology to support fuel cell
vehicles for many years and view fuel cells as one of the most important
technologies for the early 21st century. With our collaborative efforts, we
think we can accelerate the commercial viability and implementation of fuel
cell vehicles.''
Jurgen E. Schrempp, Chief Executive Officer of Daimler-Benz, expressly
welcomed the new alliance and stated, ''This cooperation is impressive
evidence of the fact that the fuel cell represents a serious and promising
alternative to the conventional combustion engine.''
''Ford joining Ballard and Daimler-Benz to bring the next generation of
clean, efficient, propulsion systems for vehicles to the world's automobile
industry is yet another historic event for Ballard. Ford adds significant
market and technical strength to the Alliance which is dedicated to bringing
fuel cell powered vehicles to the world market'', said Firoz Rasul, President
and Chief Executive Officer. ''Through Ballard's relationship with Ford and
Daimler-Benz, we have the strength, resources and commitment to bring Ballard
Fuel Cells to volume commercial production.''
Ballard Power Systems is the world leader in the development of proton
exchange membrane fuel cells. Daimler-Benz has unique expertise in research
into alternative drive systems and automotive fuels. Ford is highly regarded
for its advanced electric vehicle powertrain technology.
Fuel cells, which generate electricity from hydrogen and oxygen from air
to power vehicles, have the potential to provide the size, range, roominess
and speed of conventional cars and trucks while emitting little more than
water vapor into the atmosphere. The Alliance aims to have fuel cell
powertrains available to support commercialization of fuel cell vehicles by
2004.
Ballard will be responsible for fuel cells, with Daimler-Benz and Ford
holding 20% and 15% of Ballard Power Systems Inc., respectively.
Daimler-Benz will be the majority owner of DBB Fuel Cell Engines GmbH,
responsible for fuel cell systems, with Ballard and Ford holding about 26% and
23% respectively.
Ford will be the majority owner of a new company responsible for electric
drivetrain systems, with Ballard and Daimler-Benz owning 19% each.
Ford will invest C$296 million of cash in Ballard Power Systems to
acquire 3,662,500 shares in Ballard at a price of C$80.80 based upon the 20
trading day weighted average price calculated as of Friday, December 12, 1998.
Ford will also acquire from Daimler-Benz 393,750 common shares of Ballard so
that after the transactions Ford will own 15.1% and Daimler-Benz will own
20.0% of Ballard.
Ford will also invest C$100 million of cash in DBB Fuel Cell Engines and
acquire an additional C$16.5 million interest in DBB from Daimler-Benz so that
after the transactions Ford will own 23.3%, Ballard will own 26.6% and
Daimler-Benz will own 50.1% of DBB Fuel Cell Engines.
In addition, a new entity (ECo) will be formed to further develop and
commercialize electric drive trains for electric vehicles. Ford will invest
C$202 million of cash, technology and other assets, and Ballard will invest
C$48 million of cash, in ECo and Daimler-Benz will acquire C$48 million in ECo
shares from Ford such that Ballard and Daimler-Benz will each own 19.2% and
Ford will own 61.6% of ECo.
Background Technical Information:
Ballard Fuel Cells are clean and efficient electrochemical devices which
convert a fuel into usable electricity, directly without combustion.
Surrounding the fuel cell is a system which consists of a fuel processor, air
supply, and control subsystems. An electric drive system consists of a
traction inverter, electric motor, and transaxle which converts electricity
generated from a fuel cell system or stored in batteries to tractive power for
car, truck, bus or other vehicle.
Fuel cell applications include small, portable emergency
electricity-generating power plants, distributed power plants up to one
megawatt in size, engines to power cars, buses, trucks, rail vehicles, ships,
satellites and space stations. The major advantage of this technology is that
it offers low - or even zero - emission levels with a high degree of
efficiency.
A fuel cell takes hydrogen fuel, which can be obtained from natural gas
or methanol, and oxygen from the air and electrochemically combines them to
produce electricity and heat with pure water as the only by-product. The
various types of fuel cells are identified by the different electrolytes used.
A Ballard Fuel Cell uses a Proton Exchange Membrane (PEM).
A PEM fuel cell consists of two electrodes, the anode and the cathode,
separated by a polymer electrolyte. Each of the electrodes is coated on one
side with a platinum catalyst. Hydrogen fuel dissociates into free electrons
and protons (positive hydrogen ions) in the presence of the platinum catalyst
at the anode. The free electrons are conducted in the form of usable electric
current through the external circuit. The protons migrate through the membrane
electrolyte to the cathode. At the cathode, oxygen from the air, electrons
from the external circuit and protons combine to form pure water and heat, to
obtain the desired amount of electrical-power-generated individual fuel cells
in a stack. Increasing the number of cells in a stack increases the voltage,
while increasing the surface area of the cells increases the current.
Proton exchange membrane fuel cells are suited for mobile applications --
cars or buses -- because of their operating temperatures of between 20 and 100
degrees Celsius and their high power density. They can be operated with
hydrogen derived from fuels such as methanol or natural gas and with oxygen
derived from normal air. PEM fuel cells have been demonstrated in
transportation, stationary and portable power applications.
Ford Motor Company is the world's largest producer of trucks and the
second largest producer of cars and trucks combined. Ford sells more than 70
different types of vehicles worldwide, marketed under the Ford, Lincoln,
Mercury, Jaguar, and Aston Martin Brands. Revenues in 1996 were US$147
billion. In 1996, more than 370,000 people were employed by Ford worldwide.
Daimler-Benz is the world's most comprehensive provider of
technologically advanced transportation products, traffic systems and services
and has 290,000 employees and revenues of approximately US$60 billion.
Daimler-Benz is focused on the development and manufacture of Mercedes-Benz
cars and commercial vehicles, Freightliner trucks, rail systems, diesel
engines and microelectronics.
Ballard Power Systems is the world leader in the development of proton
exchange membrane fuel cells. At the heart of its products is the Ballard Fuel
Cell, a proprietary zero-emission engine that converts methanol, natural gas,
gasoline or hydrogen fuel into electricity without combustion. Ballard Fuel
Cells are currently being used by leading international companies to develop
zero-emission vehicles and clean stationary electric power generators.
Ballard's Common shares are listed on The Toronto Stock Exchange under
the trading symbol ''BLD'' and on the Nasdaq National Market System under the
symbol ''BLDPF''.
-0- 12/15/97
For further information: Investor information: Paul Lancaster, Ballard Power Systems Inc., Burnaby, BC, Canada, Tel: (604) 454-0900, Fax: (604) 412-4700; Media information: Debby Roman, Ballard Power Systems Inc., Tel: (604) 412-4740, Fax: (604) 412-3131, debrom@ballard.com; Wolfgang Scheunemann, Daimler-Benz AG, Stuttgart, Germany, Tel: (011) 49 711 17 93307, Fax: (011) 49 711 17 94365, 100106.5586@compuserve.com; Ian Slater, Ford Motor Company, Dearborn, MI, USA, Tel: (313) 322-9600, Fax: (313) 845-0570 |
